Historically, the ABS has collected income and expenditure statistics via the Survey of Income and Housing Costs (SIHC) and the Household Expenditure Survey (HES). For the 2003/2004 financial year, these two surveys were combined to form the Household Income and Expenditure Survey (HIES). The HIES can be viewed as a two-phase survey with the first phase collecting income data and a smaller second phase collecting expenditure data. This paper presents the proposed estimation methodology for HIES, namely two-phase calibration, and discusses the associated issues including the selection of auxiliary variables, dealing with non-response, and variance estimation.

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